By taking into account the procyclical nature of the money multiplier varies procyclically due to the public's portfolio decisions, this note shows that the slope of the LM curve need not be positive but can be of any sign. From this it follows that a fiscal-policy generated shift in the IS...

This article employs 1963-97 panel data for the 48 contiguous U.S. states (and District of Columbia) to examine the relationship between real personal income and real education expenditures as well as that between real personal income and six measures of real research and development...